Mischon de Reya has advised its online gambling partners to prepare for the possibility that the EU could prohibit data transfers to the UK.
Post-Brexit Data Protection Still Unclear
London-based law firm Mischon de Reya has informed its partners of further concerns and complications that Brexit would have on the online gambling sector. The notice covers several major points of concern, including data protection rights, employment and industry-related service contracts.
The UK’s decision to leave the European Union (EU) has had a significant impact on the country’s industries and markets across the board. The impact on the online gambling market has been less pronounced so far. This is in no small part due to operational changes that the market undertook during the Brexit transitional period.
However, the gambling market still does not have clarity about future business relationships between the EU and the UK. Most crucially, there is still no final consensus on data protection after Brexit, which leaves digital trade hanging in the balance.
Currently, UK-based companies have a period of four months, which can be extended by an additional two months, to submit for an adequacy review with the European Commission. The results will be used to determine whether the UK’s data protection system meets the EU’s standards.
Mischon de Reya Advices Business To Prepare For Possible “No”
According to Mischon de Reya, if the EU deems that the UK’s data protection is inadequate, it may be necessary to revisit contracts that involve the transfer of data from the EU to the UK. The law firm notes that such contracts would have to be put in accordance with the direction given by the European Data Protection Board.
Mischon de Reya also affirmed the European Gaming & Betting Association’s (EGBA) recent industry warning. According to both the EGBA and Mischon de Reya, the lack of a long-term agreement on the nature and details of data transfers between the EU and the UK is the most concerning outstanding issue with Brexit.
The law firm has also warned its online gambling partners of potential disruptions to their business. Mischon de Reya has urged its partners to assess their intra-group and external contacts and evaluate how they would be impacted if the UK does not pass the EU’s adequacy check.
Furthermore, the company advised businesses to consider the extent to which they will transfer personal data across the border. According to Mischon de Reya, there is a reasonable risk that possible data protection breaches could result in investigations on both sides of the border, as well as two sets of fines.